Guyana's capability to manage contracts still a concern for Exxon – Wood Mackenzie

USA oil giant, ExxonMobil, may be striking up a successful exploratory record in the Stabroek Block, but it is still concerned about the nation's capability to manage contracts.

This is according to industry experts attached to Wood MacKenzie. The point was made during one of its online discussions on ExxonMobil's tenth deepwater discovery—The Pluma-1 well.

Specifically, Wood Mackenzie's Luiz Hayum said that the operator has some aggressive targets but “it still has concerns especially on Guyana's capability to manage contracts, possible escalation of local content requirements, but mainly on finding a solution from finding a large amount of gas.”

Be that as it may, Hayum said that the Stabroek Block has huge potential and it confirms the need for one more development phase, which would take it to a total of six. He noted that Liza Phase One is on track for 2020 production and expects that the fifth development phase would be significant. Hayum projects that Guyana could expect about 800,000 barrels of oil per day from the fifth phase.

Wood Mackenzie is said to be a global leader in commercial intelligence for the energy, metals and mining industries.

The Pluma-1 well is ExxonMobil's tenth and latest discovery to date on the Stabroek Block.

The discovery was announced in December 2018. Pluma was drilled in a new reservoir and encountered approximately 121 feet (37 metres) of high-quality hydrocarbon-bearing sandstone. The Noble Tom Madden drillship began drilling it on November 1, last. The well is located approximately 17 miles (27 kilometres) south of the Turbot-1 well.

The gross recoverable resource for the Stabroek Block is now estimated to total more than five billion oil-equivalent barrels, including Liza and other successful exploration wells such as Payara, Liza deep, Snoek, Turbot, Ranger, Pacora, Longtail and Hammerhead.

The Noble Bob Douglas continues to drill the Liza Phase One development wells and will continue drilling exploration wells. It will move to drill the Tilapia-1 prospect located 3.4 miles (5.5 kilometres) west of the Longtail-1 well.

The Stena Carron drill ship was docked in November last for scheduled 10-year maintenance, during which new K-Pos Dynamic Positioning, K-Chief Automation, K-Thrust Thruster Control and a Kongsberg Riser Management System will all be installed, after which it will return to Guyana.